More and more companies are turning to independent contractors, especially if the task falls outside their core business. For example, an insurance firm might hire an electrician to reroute a few wires.
To thrive in business, independent contractors need to know how to sell their most important asset, which is their own services. Here are some way you can convince reluctant companies to give you work.
Be a Responsible Contractor
Traditionally, companies kept tasks in-house because they knew these tasks would be completed professionally. To counter that argument, you need to show responsibility. Independent contractor insurance is one of the best ways to establish that credibility. Insurance shows potential customers that you take your craft very seriously. Moreover, because of liability concerns, many companies do not hire uninsured contractors.
So, unprotected contractors could be losing a lot of business.
Contractors are Cost Effective
Employees are extremely costly both in terms of time and treasure. There are many federal and state regulations. Most employees also expect benefits. Finally, all employers must pay payroll and other taxes for all their employees.
Contractors come with almost none of these requirements. Other than a brief 1099, there is no paperwork. There’s also no financial investment other than the compensation to the contractor. That could be an hourly rate, but it could also be a predictable flat rate.
Lack of Liability
A complex network of federal and state anti-discrimination laws apply to regular employees. Even a slight misstep can lead to a major lawsuit. These provisions apply at almost every phase of the relationship, from hiring to promotions to termination.
On the other hand, an employer-independent contractor relationship is more like an agreement between two business entities. The law rightly presumes that most contractors are more savvy than most employees. So, contractors need fewer legal protections. Once again, the lack of liability applies at almost every phase of the relationship.
No Training Required
Many things must happen before a regular employee can successfully handle a non-core business task. The project parameters must be specifically spelled out, the worker requires intensive training, and the job must be closely supervised. In other words, it’s a time-consuming ordeal.
But after just one call to a contractor, the problem is essentially solved. Because of the contractor’s expertise, there’s no need to micromanage the job. There’s also no need to train the contractor. As a result, business owners can concentrate on running their businesses.
Scalability
Workload varies as projects come and go. Because of the anti-discrimination hurdles mentioned above, it’s not always easy to trim your workforce during lean times and build it up when necessary.
Since contractors are not subject to these rules, it is rather easy to hire or dismiss them at will. Once again, the relationship is one between two business entities. That’s much easier for most business owners to navigate.
By 2020, over half of U.S. workers may be freelancers or independent contractors. This influx of talent gives business owners lots of choices. These tips, and others like them, will help you move to the front of the line.